Beige Book: Region's economy grows moderately

The June 14 report, a short-term snapshot of the economy, covers the Federal Reserve Bank’s 10th district, which includes western Missouri, Colorado, Kansas, Nebraska, Oklahoma, Wyoming and northern New Mexico.

In the region, manufacturing production, shipments and new orders increased, and capital spending had solid growth. Some respondents reported difficulty in acquiring steel.

Retail sales were higher than a year ago, though some retailers said inventory levels were too high. Auto sales remained mostly unchanged from last year, despite declining sales of SUVs and pickup trucks. Travel and tourism spending remained mostly unchanged.

Home builders reported that starts decreased somewhat, and they expect further declines. The market for high-end homes showed weakness. Meanwhile, commercial real estate activity increased, as vacancy rates declined and rents rose slightly.

In banking, demand rose for commercial real estate loans, while demand for home equity loans fell.

Agriculture had a rough two months, as drought conditions intensified.

In some areas, winter wheat production is expected to be about 50 percent below last year’s level, which has caused wheat prices to rise to their highest levels in several years. High fuel, fertilizer and rail-transportation costs also brought about concerns.

In labor markets, hiring activity outpaced layoff activity by a sizable margin, and most new jobs were in manufacturing. Employers rated the job market as favorable for recent college graduates.

Engineering, automotive, nursing, fuel and manufacturing reported worker shortages.

The Federal Reserve publishes the Beige Book eight times a year and uses it to help determine monetary policies.

This story originally appeared in SBJ’s June 22 free e-news Daily Update. Click here to register.[[In-content Ad]]